It’s been a volatile session for crude oil as it’s continuously trading bullish, near 3/2-year highs after President Donald Trump pulled the U.S. out of an international nuclear deal with Iran. Thereby, sparking anxieties about a fresh tension in the Middle East and global oil supplies.

By the way, if you are wondering what Iran has to do with crude oil prices, I would like to add, Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the main supplier, particularly to refiners in Asia.

In response, Asia’s petroleum refiners are struggling to locate alternative supplies in order to cope with the renewed U.S. sanctions against Iran.  I hope the picture is clear to you now, so let’s speak about the technical drivers.

Crude oil finally has come out of the sideways range ($67 – $69) after bullish fundamentals. The $69.40 level was working as a resistance but since it has already violated now, the same level will be a support. Oil is likely to target $71.75 now. Looking at the RSI, it’s about to cross above 50, which will be another motivation for buyers.

WTI Crude Oil – Trade Idea

It will be nice to stay bullish above $70.55 with a stop below $70 and a take profit at $71.75. Good luck!